Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 25: To ask the Minister for Jobs, Enterprise and Innovation his plans to update the current partnership law; and if he will make a statement on the matter. [28649/11]

Richard Bruton (Dublin North Central, Fine Gael)
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The Company Law Review Group (CLRG) gave in-depth consideration, over a period of 4 years, to the reform of partnership law, in particular to the possibility of introducing Limited Liability Partnerships for accountants and solicitors. In general, the CLRG did not find any strong tide of opinion running in favour of introducing Limited Liability Partnerships. However, the Group did say that the issue warranted some further consideration and recommended that the Department of Jobs, Enterprise, and Innovation and the Department of Justice and Equality should establish a committee, made up of representatives of both Departments and of the CLRG, the Irish Accountancy and Auditing Supervisory Authority and the Courts Service, to consider whether accountants and solicitors should be permitted to form Limited Liability Partnerships or companies.

The issues at stake here are complex and wide ranging, particularly as it could involve the establishment of a new legal form which would have to apply generally and not only to the professions. The committee considering the issues will also have to take into account the taxation and transparency issues before coming to a conclusion and recommendations. In the meantime, the Minister for Justice, Equality and Defence will soon publish the Legal Services Regulation Bill and I understand that it will include provision for the new Legal Services Regulatory Authority, to be established by the Bill, to conduct research and consultation and make proposals on partnerships for the legal profession.

Finally, the overall position on liability has been changing in the last few years. Section 44 of the Civil Law (Miscellaneous Provisions) Act 2008 provides that a solicitor may contract with a client to limit his/ her liability to that client. Furthermore, S.I. 220/2010, European Communities (Statutory Audits) (Directive 2006/43/EC) Regulations 2010, provides, among other things, for the removal of the prohibition on auditors incorporating as a limited liability company.